re: #36 Gus 802

McClatchy is conducting a witch hunt on Goldman Sachs. They can repeat the scare word “secret” as many times as they like but the Swaption market traded off exchange and there were no reporting requirements.

GS was smart enough to hedge off their risk as the market weakness became apparent. That’s what they do, they predict future market moves and manage their risk.

The pensions were responsible for their own risk profile, they could have used swaptions to mitigate their risk as well, instead, they were greedy and tried to collect all of the premium on their bonds.

Now they are in essence alleging breach of fiduciary which is highly ironic as the the pension funds lost vast amounts of capital entrusted in them by individual investors failing to use hedging on the mutual fund and stock market investments.

The bonds GS sold were rated by the ratings agency, not GS. They were the real con artists but as they are shielded from lawsuits the lawyers are going after GS and making them scape goats.